California Small Business Loan Match, a new lender match tool for business owners to discover vital funding options, has launched in California. A one-stop solution that is free and easy to navigate, caloanmatch.org brings together more than 20 lenders across the state that are considered responsible and non-predatory. The goal is to empower entrepreneurs, particularly those who are socially and economically disadvantaged, through responsible lending that is backed by the State of California.
“We are thrilled to launch California Small Business Loan Match and connect California small business owners with pre-vetted lenders and loans they can trust,” said IBank Executive Director, Scott Wu. “All of these lenders use IBank’s Small Business Loan Guarantee Programme which reduces lenders’ risk in loaning to small businesses that may struggle to access capital. The programme has successfully supported more than US$2 billion in loans to small businesses across the state since 2013.”
Powered by California’s IBank, a state government agency that manages the Small Business Loan Guarantee Programme through their Small Business Finance Centre, the new tool features lenders that are Community Development Financial Institutions (CDFIs). CDFIs are preferred by the small business community because they help borrowers who don’t meet the more rigid lending criteria of traditional banks. For example, small businesses that have a lower credit score or a defaulted loan. CDFIs also help people in lower-income communities and offer a much more flexible and affordable repayment plan.
“Our lenders on California Small Business Loan Match are ideal for business owners who have been turned away from traditional banks or who faced hardships that they’re still recovering from,” said Megan Hodapp, IBank’s Small Business Finance Center Manager. “With this tool, we will help small business owners avoid predatory lenders and feel supported throughout the entire process.”
As a no-cost, one-stop solution, caloanmatch.org is easy to use and navigate. First, business owners fill out a short pre-application questionnaire that takes minutes to complete. Next, the site will match the owner with lenders that fit their needs. Business owners can view details about each lender and select the one they like best. The lender will reach out within three business days to complete the application process.
The launch of California Small Business Loan Match is supported by the Initiative for Inclusive Entrepreneurship (IIE) in partnership with Next Street and Community Reinvestment Fund, USA (CRF).
IIE brings together public, private and philanthropic entities to maximise and build upon the US Department of Treasury’s US$10 billion State Small Business Credit Initiative (SSBCI) by expanding innovative products for small business owners of colour, breaking down systemic barriers and ultimately unlocking billions of dollars in federal investments aimed at underserved small businesses.
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